Currency trading account australia

If John had not closed out this trade and the value of the AUD against USD continued to fall, he may have had to meet a margin call and lose many times his original investment. If John had arranged a guaranteed stop loss order with his provider, this would have cost him a fee. The guaranteed stop loss order would have closed him out of the trade at a certain price to prevent further losses if the market moved against him. This may have capped his losses but would not have covered them entirely.

Forex trading raises the stakes further by letting you trade with borrowed money leverage , but you'll be responsible for all losses, which may exceed your initial investment. Margin FX trading is one of the riskiest investments you can make. Different types of foreign exchange trading products involve different risks so you should read the product disclosure statement carefully before investing.

You should also check that the forex provider you are thinking of dealing with has an Australian Financial Services Licence. Find out what an AFS Licence means. If the provider does not have an AFS licence, make sure it is regulated by an appropriate overseas authority trading with these providers may not give you recourse to Australian laws. See check an investment company or scheme for more details. Read ASIC media release warning about a fake forex website.

To successfully trade you will need to have good knowledge of foreign exchange, leverage, volatility and the conditions of each country whose currency you are trading. In the wake of the global financial crisis, the United States put a handbrake on the retail foreign exchange industry, limiting it to a maximum leverage ratio of The Australian Securities and Investments Commission says the question of greater controls is one for Government, but it has repeatedly warned consumers that leveraged foreign exchange trading is a risky product.

However, victims of the Swiss franc meltdown argue that ASIC should have policed the industry more thoroughly. Because this time it happened in the currency space, but who knows what is the next time bomb? First posted February 12, If you have inside knowledge of a topic in the news, contact the ABC. ABC teams share the story behind the story and insights into the making of digital, TV and radio content. Read about our editorial guiding principles and the enforceable standard our journalists follow.

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Exclusive by business reporter Neal Woolrich. Australian retail foreign exchange traders lost millions due to the Swiss franc's sudden appreciation last month. Do you know more about this story? Top Stories 'He was face down, disarmed': At the very least any Forex Broker should give you a range of deposit and withdrawal options that will not mean you are going to be hit with fees and charges for turning your AUD into the trading currency used by any trading platform. If you are having to pay lots of additional fees for turning your trading budget into one currency then another set of fees and charges to turn a withdrawal from one currency back into AUD then that is going to constantly eat away at your profits, which is something no currency trader should have to put up with.

We have therefore chosen to list Australian Forex Brokers that offer their clients a wide and very diverse range of banking options. This will allow you to fund your online trading account and make withdrawals from it, safe in the knowledge you are not going to lose any value of winning trades or affect your trading budgets value by being forced to pay high fees and commissions.

Licensed and Regulated Australian Forex Brokers — You may be a little dubious in regards to actually becoming an online Forex Trader should you have been reading horror stories of traders who have lost huge amounts of cash when trading a certain Forex Brokers.

With the internet being what it is and as there are now no boundaries in place in regards to which sites you can trade currencies at, it is vitally important that you only sign up to and become a customer of a Forex Broker that is fully licensed and regulated by a recognised licensing jurisdiction. If you by pass and ignore those trading sites that are based in countries you may never have heard of or who do not hold a full trading license then you are never going to run the risk of being ripped off or scammed.

All of our listed and fully reviewed Australian Forex Brokers found upon this website hold a full trading license in a recognised licensing jurisdiction. This will guarantee your funds are held in a segregated account and you will have the respective licensing authority to call upon should you ever have any unresolved problems trading at any of our top Forex Brokers.

There are enough risks involved with picking the right Forex options to trade in the hope you lock in and make a profit on those trades without you taking any unnecessary risks in regards to the Forex Brokers you are placing those trades at vanishing into the night!